EverQuote — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue grew 25% year-over-year to $218.1 million, compared to $173.9 million in Q3 2025.
• GAAP net income was $18.2 million, down from $18.9 million in Q3 2025, attributed to higher income taxes and a one-time item.
• Adjusted EBITDA increased 41% year-over-year to $35.5 million, compared to $25.1 million in Q3 2025.
• Operating cash flow rose to $40.5 million, up from $19.8 million in Q3 2025.
• The company ended the quarter with $229.1 million in cash and cash equivalents and no outstanding debt.
• Income from operations grew 36.5% to $23.9 million, compared to $17.5 million in Q3 2025.
• Variable marketing dollars increased 24.9% to $62.6 million, compared to $50.1 million in Q3 2025.
• Stock-based compensation expense for the quarter was $6.6 million, compared to $6.7 million in Q3 2025.

Guidance and Future Outlook:

• Q4 2026 revenue guidance is set between $213.0 million and $223.0 million.
• Q4 2026 variable marketing dollars are expected to range from $57.0 million to $60.0 million.
• Q4 2026 Adjusted EBITDA guidance is projected between $29.0 million and $32.0 million.
• Management indicated ongoing positive momentum and demand, citing strong underwriting profitability and growth appetite among carriers.

Business Segments and Product Lines:

• Automotive insurance vertical revenue reached $190.4 million, representing 21% year-over-year growth.
• Home and renters insurance vertical revenue reached $27.7 million, representing 70% year-over-year growth.
• The company is accelerating new product innovation and development to support the "agentic AI era."
• A multi-year vendor contract for advertising services was terminated in Q3 2026 with a $4.0 million payment in exchange for ending a $15.5 million remaining commitment.

Market and Competitive Landscape:

• EverQuote positions itself as a leading AI-powered growth solutions partner for regulated property and casualty insurance entities.
• The company serves the largest insurance carriers and thousands of agents, leveraging proprietary data assets and an AI traffic engine.
• Management noted that carriers continue to maintain strong underwriting profitability and an appetite for growth.

Risks and Challenges:

• The business faces risks related to dependence on the property and casualty insurance industry, specifically automotive insurance.
• There is reliance on a small number of insurance provider customers for a significant portion of revenue, with no long-term minimum financial commitments.
• Risks include dependence on third-party media sources for website traffic, cybersecurity incidents, and regulatory changes regarding data privacy and telemarketing.
• Future results are subject to risks associated with AI investments, including costs and potential impacts on financial statements.

Management Commentary and Tone:

• CEO Jayme Mendal stated the company is generating record results across key financial metrics and executing seamlessly to meet carrier demand.
• CFO Joseph Sanborn highlighted the strength of the market position as a trusted growth partner and the ability to invest in AI initiatives while maintaining a fortress balance sheet.
• Management expressed confidence in the company's unique positioning to steward P&C insurance into the agentic AI era.

Other Key Points:

• The Board of Directors approved a $50 million share repurchase program.
• The company reported a one-time vendor contract termination payment of $4.0 million in Q3 2026.
• No legal settlement costs were recorded in Q3 2026, whereas $8.2 million was recorded in the nine months ended September 30, 2025.
• The company will host a conference call and webcast on November 2, 2026, at 4:30 p.m. Eastern Time.